How to Check if a Business is Real

In today’s world, it’s easier than ever to start a business online. This is great for entrepreneurs, but it also means it’s easier for scammers to set up fake businesses and I regularly get asked by friends what I think about a business that is advertising on Facebool . Whether you’re shopping online, looking for a job, or seeking services, it’s important to know if a business is legitimate. This blog post will guide you on how to check if a business is real, using simple and effective steps.

1. Look for a Physical Address and Contact Information

Photo by Robert Bye on Unsplash

A real business usually has a physical address and contact information, like a phone number or email address. If you’re shopping online or considering working with a business, check their website for this information. Be cautious if a business doesn’t provide these details or if the address seems strange. For example, a real business shouldn’t use a P.O. Box as their main address.

2. Check the Website’s Domain

Look at the website’s domain name. Real businesses often have domains that match their company name. Be wary of websites with odd domain endings or lots of numbers and symbols. For example, a company called “Super Shoes” should ideally have a domain like “supershoes.com” rather than “supershoes123.info.” Also, check if the website is secure by looking for “https://” at the beginning of the web address. The “s” stands for secure, meaning the website is safer to use but bear in mind that a certificate (the bit that generates the “s”) is very easy to get for a website at no, to little cost.

You can also check how old the domain is – Forest Software’s domain was registered back in December 1997 ( https://who.is/whois/forestsoftware.co.uk ) and this suggests that it’s more of a real business than one who’s domain was registered yesterday.  Having said that, bear in mind that some businesses go through a rename/rebrand/merger exercise that that they are likely to a new domain name for that reason.

3. Read Online Reviews and Testimonials

Reviews and testimonials can provide valuable insight into a business’s reputation. Look for reviews on independent websites like Trustpilot or Google Reviews, as these are harder for businesses to control or fake. Be cautious of reviews that seem too positive or too negative, as they might be fake. If a business has mostly good reviews and a few bad ones, it’s normal. However, if there are many complaints about the same issue, it might be a red flag.  Similarly, too many 5 star reviews gained in a very short time can be suspicious.

4. Check for Registration and Licences

Many businesses need to be registered with a government authority. In the UK, you can check if a company is registered by visiting the Companies House website. This site allows you to search for the business by name and see information like when it was established and who the directors are. If the business offers specific services, such as financial, legal advice or medical care, it should also have the necessary licences. You can ask the business for proof of these licences or check with the relevant professional bodies.

5. Verify Their Online Presence

Real businesses usually have a consistent online presence. This means they are active on social media and have profiles on sites like LinkedIn although this an depend on the type of business. Check if the information on these platforms matches what’s on their website. If a business has an outdated or very minimal online presence, it could be a sign of a scam. Also, see if the business has been mentioned in news articles or by industry experts. This kind of validation adds to their credibility.

6. Contact Them Directly

One of the simplest ways to check if a business is real is to contact them directly. You can call their phone number or send an email to see if they respond. Be wary if you only get generic responses or if the phone number doesn’t work. A real business should have a professional response system, whether it’s through email, phone, or live chat.

7. Check Their Business Practices

Real businesses are transparent about their prices, products, and services. They should have clear policies about returns, refunds, and shipping. If a business refuses to provide this information or if their terms seem too good to be true, it’s a warning sign.

LaserPecker2

For example, if a website offers very expensive items at extremely low prices, it could be a scam.  A year or so ago, I saw a number of sites pop up that were apparently selling a LaserPecker 2 portable laser for £29.99 when the actual retail price was up to £1000.

8. Ask for Recommendations

If you’re still unsure, ask for recommendations from friends, family, or colleagues. Word of mouth is a powerful tool, and people are usually willing to share their experiences, whether good or bad. If someone you trust has used the business before and had a positive experience, it’s a good sign. On the other hand, if no one has heard of the business, you might want to be more cautious.

9. Look for Red Flags

There are certain red flags to look out for that can indicate a business is not legitimate. These include:

• Pressure to Buy Quickly: Scammers often pressure you to make quick decisions.
• Requests for Unusual Payment Methods: Be cautious if a business asks for payments in gift cards or cryptocurrencies.
• Spelling and Grammar Errors: Many scam websites have poor spelling and grammar, which can be a sign they are not professional.
• Too Good to Be True Offers: If a deal seems too good to be true, it probably is.

10. Use Online Tools

There are many online tools and resources that can help you verify a business. For example, the Better Business Bureau (BBB) in the USA and Trustpilot offer databases of business reviews and ratings. You can also use WHOIS lookup tools to find out more about who owns a website and how long it has been registered. These tools provide additional layers of verification to ensure you’re dealing with a legitimate business.

Conclusion

In a world where online scams are becoming more common, it’s important to know how to check if a business is real. By following these steps, you can protect yourself from scams and ensure that you’re dealing with legitimate businesses. Always take the time to do your research before making any transactions or sharing personal information. Remember, if something feels off or too good to be true, it’s worth investigating further. Stay safe and smart online!